A macroeconomic perspective of pakistans transport sector

In an update of its twice-yearly economic report, the World Bank warned that the economic uptrend this year was temporary. Most of this growth has been triggered due to a strong recovery by agriculture and manufacturing, where growth has reached 3. The federal government will have to work in increasing this tax base to ease out the pressure from existing tax-payers.

The inflation will go up but it is not expected to get out of control. In addition to boosting the financial markets, it will particularly contribute towards reducing the price uncertainty in non-perishable agricultural products.

The agriculturist will concentrate on trading and industrial sector. It is expected that this surge of imports will settle in the coming years and exports will begin to increase as the dividends from these investments will materialise.

As the increase in economic growth will average 5. The key recommendations include: Higher inflation could affect consumption negatively, but the overall impact of a moderate depreciation on growth is likely to be positive. The domestic demand was driven by powerful credit growth and investment.

Economic outlook The overall economy of Pakistan is performing well and continues to grow strongly. The government may promote derivative trading in commodity markets to provide a widespread market for exchanging risk. There will be expansion in the job market and there will be improvement in job situation and salary increase for the working class.

The progress on the export front will be slow and tiresome. Punjab is working rigorously to improve its performance against the doing business indicators that fall in provincial domain enforcing contracts, registering property, starting business, and dealing with construction permits.

Remittances from the Gulf countries amounted to Losing out the export competitiveness has been an important issue facing the economy. The World Bank said that fiscal slippages are the main risk for the economy, and are expected owing to elections and weak tax revenues.

Credit access under the new policy may encourage medium and small enterprises.

Easy access to credit for farmers may be ensured to revitalise the agriculture sector. The World Bank estimates that the agriculture sector will expand 2.

The loan repayment obligations may be scaring. Ease of doing business reforms agenda should get a big push in the coming year, especially considering the fall back on the ranking in The tax base of the FBR is still quite narrow, in fact the number of filers in the last financial year decreased instead of increasing.

Pakistan may find itself back in the IMF fold. Having peaked at 8. Most of the growth will be driven by emerging economies, in particular commodity exporters, with growth rates for the group as a whole rising to around 4.

However, a depreciation will only impact competiveness if the government is able to control inflation. The acceleration in economic growth may affect well for the masses.

Pakistan is expected to witness a 5. Cheap loans for the agriculture sector, in particular for small farmers, are necessary to offset the input costs and timely provision of seeds and fertilisers. Published in The Express Tribune, April 9th, Thus, it is strongly recommended that the federal government may work out the burden of taxes and its correlation with inflation to improve competiveness of the sectors.

The pace of world growth was expected to moderate to 3 percent in and 2. The gap between imports and exports of goods widened From a global perspective, relative strengthening in economies of the US, EU and UK inalong with partial recovery in commodity prices, boosted the prospects of those emerging economies whose growth tends to hinge on exports and remittances.

It will be unrealistic to expect meaningful structural or taxation reforms in an election year. Growth in developed economies is projected to slow to 2. Exchange rate remained stable and Pakistan was able to rebuild its foreign exchange reserves in the past 5 years.

Pakistanis will be engaged safely in capital formation in the real sector as against those dragging assets through speculative businesses. For Pakistan as well, both these sources of foreign exchange inflows picked up during With tapering foreign exchange earnings during the year and lower-than-expected financial inflows, the rise in import burden created a deficit in the balance of payments.

Strategic interventions and reforms by the federal government are required to address sectors represented by the aforementioned weakening economic indicators to ensure macroeconomic stability in the long-run.

Additional stress on the import bill came from steady progress on CPEC-related power and road construction projects.Realizing the importance of transport and communication, the incumbent government has pinned top priority to the transport and communication sector during last four years.

2 These projections are based on Pakistan Economic Survey, Figures for to This would help in the diversification and growth of Pakistan’s manufacturing sector. within a long term perspective Pakistan’s economy could face such a severe. Pakistan’s economic history we will examine how an economic structure emerged that on the one hand constrains the achievement of a high GDP growth on a sustainable basis and on the other constrains the capacity of poverty reduction for given GDP growth rates.

Pakistan may also experience a surge of private and foreign investment as the country lacks public investment in the transport sector.

Only % of Public Sector Development Programme (PSDP) fund is spent on annual transport budget, which is not sufficient [18]. road freight transport sector & emerging competitive dynamics trade related technical assistance programme under the european union funded trtaii programme this module was developed by pitad through the technical support of wti and coordination of itc.

A Macro Economic Perspective of the Government Corporations in the Transport Sector of Pakistan PAGES 4.